Are You Selling At the Right Price?

posted 14 Jul 2013, 02:21 by Dean Allan   [ updated 14 Jul 2013, 04:11 ]

We had an interesting sales experience today - and we did not even have to leave home to experience it!!!

We are having a "clean out" of things around the house at the moment and found an old Nintendo 64 game console and 11 games that had not been played in years.

Our first thought was to sell it in a "garage sale", but then decided that as all the accessories were included and the console and games were in perfect working order we would try to sell it online via the online sales site, Gumtree.

We checked out Gumtree for similar items already up for sale and were quite surprised at how much people were asking for such an old style game. 

There were advertisements promoting consoles and a couple of games for several hundred dollars and we were thinking that if we got $50.00 for our console and all the games, we would have been happy!!!!

After seeing what the asking prices were on Gumtree, we immediately advertised ours for $120.00 and the advertisement had not been posted 5 minutes when the phone started ringing - and ringing - and ringing!!!

We ended up with no fewer than 12 calls and sold the console and games within a few hours (dropping the price by $10.00 because the buyer had driven some distance to buy it). 

This experience got me thinking about costing products and services - as long as both parties in a sales transaction believe they are "winning", then our experience today shows that sales transactions can be quick and easy. 

Is there any resistance from your customers around price and if so, can you structure (or re-structure) the sales transaction so that it meets your customer's expectation of a "good price" while at the same time providing you with an acceptable profit?